At A Glance

Financials

At A Glance

Corporate Responsibility

Accelerate

Productivity

Continuous improvement is in our DNA.
In everything we do — from developing new
products to finding better ways to serve
our customers — we aim for ever higher
levels of performance.

At the center of our continuous improvement
efforts is our ACE (Achieving Competitive
Excellence) operating system. The common
tools and language of ACE allow us to leverage
our global scale to improve margins and provide
better value to our customers. By the end of
2012, we had reached our goal of having
80 percent of our sites achieve the highest
operating performance levels of ACE Silver or
Gold. The addition of Goodrich to the portfolio
resets this number to nearly 70 percent and provides
additional opportunity to leverage ACE.

In addition to this reset, we raised the productivity and performance
requirements for our own operations as well as for
our key suppliers. We anticipate significant improvement in
productivity, quality, delivery and overall financial performance
as we drive toward our new goals of 80 percent of our sites
— and 75 percent of our key supplier spend — at the highest
ACE performance levels.

Along with tremendous new capabilities, technologies
and leadership talent, Goodrich brought with it a shared
commitment to working with customers to drive continuous
improvement. Highlighting this approach was the design, development
and testing of its evacuation slides for the Airbus A380,
which demonstrated that 873 people — the full capacity of the
aircraft — could evacuate safely and reliably in 78 seconds,
exceeding the 90-second government requirement.

The Goodrich acquisition
brings tremendous
new capabilities and a
complementary portfolio
of products, including
evacuation slides for aircraft
such as the Airbus A380.
Photo credit: courtesy Airbus.

A UTC Climate, Controls & Security
manufacturing facility in Monterrey,
Mexico, was the first facility
of its kind to achieve LEED Gold
certification for energy and
environmental performance.

ACE enables us to meet the evolving needs
of our customers while improving overall
company performance. In Monterrey, Mexico,
UTC Climate, Controls & Security has demonstrated
the dramatic improvements ACE
can deliver. Since 2009, productivity based
on cost per hour has improved 41 percent,
on-time delivery has improved to 95 percent,
first pass yield has improved to 97 percent,
and net inventory turnovers have improved by
more than 76 percent. Most important, the
facility had no lost workday injuries in 2012.

The company’s heating, ventilation and air-conditioning
factory in Monterrey was the world’s first facility of its kind
to be certified LEED Gold and the first industrial facility outside
the United States to achieve the ranking for an existing
facility. LEED, the U.S. Green Building Council’s certification program, sets the standard for the energy and environmental performance of buildings.

In Monterrey, Mexico, UTC Climate,
Controls & Security uses the ACE
operating system to improve
performance and better support
customers.